Generic Drugs Market - Global Market Share, Trends, Analysis and Forecast, 2023-2032
The global Generic Drugs market size was estimated to be US$ 566.85 Billion in 2022 and is expected grow at a CAGR of 5.7% between 2023 to 2032.
A generic drug is a medication that is equivalent to a brand-name product in dosage, strength, route of administration, quality, and intended use, but does not carry the brand name. Generic drugs are typically less expensive than the brand-name version.
Conventional drugs, also known as brand-name drugs, are medications that are developed and marketed by a pharmaceutical company under a specific brand name. These drugs are typically more expensive than generic drugs because the company that developed them has invested significant amounts of money in research and development, clinical trials, and marketing.
The main difference between generic and conventional drugs is the price. Generic drugs are cheaper because they do not have the same development and marketing costs as brand-name drugs. They also do not have the same patent protection, which means that multiple companies can manufacture and market the same drug. Conventional drugs, on the other hand, are protected by patents, which means that only the company that holds the patent can manufacture and market the drug.
Major drivers for growth:
Rising demand for medication is driving the market growth
The global generic drugs market is driven by several key factors including increasing healthcare costs, aging population, government support, expiration of patents, technological advancements and increase in chronic diseases. The rising cost of healthcare is a major factor driving the growth of the global generic drugs market.
As healthcare costs continue to rise, more and more individuals are looking for ways to reduce their expenses. Generic drugs provide a more affordable alternative to brand-name drugs, making them more accessible to a larger population.
The global population is aging, and older individuals typically require more medication. This increase in demand for medication is driving the growth of the generic drugs market. Many governments around the world are actively promoting the use of generic drugs as a way to reduce healthcare costs. This support is driving the growth of the generic drugs market.
The expiration of patents on brand-name drugs opens the door for generic drug manufacturers to enter the market. Advances in technology are also helping to reduce the cost of manufacturing generic drugs, making them more affordable for consumers. The rising incidence of chronic diseases such as diabetes, cancer, and heart disease is driving the demand for generic drugs as they provide a more affordable alternative.
Product type segmentations of Global Generic Drugs Market:
Simple generics segment is the largest in the market
The global generic drugs market is segmented into Simple Generics, Super Generics, and Biosimilars on the basis of product type. Amongst these, the Simple Generics segment is the largest in the global generic drugs market. This is because simple generics are the most common type of generic drugs and are widely available in the market. They are also the most affordable and are used to treat a wide range of conditions, making them accessible to a large population.
Simple Generics are the drugs that have been off-patent for quite some time, and have multiple manufacturers producing them, resulting in the price drop.
While the Biosimilars segment is the fastest-growing in the global generic drugs market. Biosimilars are generic versions of biologic drugs, which are drugs made from living organisms. They are becoming more popular because they are highly effective and have fewer side effects than traditional drugs.
Additionally, the patent of many biologic drugs is expiring, and this allows manufacturers to produce biosimilars, which is driving the growth of this segment. Furthermore, the increasing incidence of chronic diseases such as cancer and diabetes is expected to drive the demand for biosimilars.
Super generics are drugs that are similar to brand-name drugs, but have slight variations in their chemical composition. These drugs are typically manufactured after the patent on a brand-name drug has expired, and are considered to be bioequivalent to the brand-name drug. The demand for super generics is driven by the fact that they offer a more affordable alternative to brand-name drugs, without sacrificing quality.
Application segmentation of Global Generic Drugs Market:
Anti-cancer drug is the fastest-growing segment of this market
On the basis of applications, the global generic drugs market is segmented into cardiovascular products, anti-infective drugs, anti-arthritis drugs, central nervous system drugs, anti-cancer drug, respiratory products, and others drugs.
The largest segment of the global generic drugs market is the cardiovascular products segment. This is due to the high prevalence of cardiovascular diseases, such as hypertension and heart disease, and the ongoing need for medications to treat these conditions. Cardiovascular products include medications such as blood pressure and cholesterol-lowering drugs, which are widely used by individuals with cardiovascular disease.
The fastest-growing segment of the global generic drugs market is the anti-cancer drug segment. This is due to the increasing incidence of cancer, along with the high cost of brand-name cancer drugs.
Generic anti-cancer drugs provide a more affordable alternative to brand-name drugs, making them more accessible to a larger population. Additionally, new cancer drugs are continuously being developed and patented, which leads to the expiration of patents and availability of generic drugs in the market.
Distribution channel segmentation of Global Generic Drugs Market:
Based on the distribution channel, global generic drugs market is segmented into hospitals, pharmacies, private clinics, drug stores, retail pharmacies, and others.
Regional segmentation of the Global Generic Drugs Market:
North America is the largest market for generic drugs
On the basis of region, the market is segmented into North America, Europe, Asia Pacific, Middle-east and Africa, and South America. Amongst these regions, North America is expected to hold a significant share of the market due to the presence of a large patient population and the high adoption rate of generic drugs in the region.
The increasing healthcare costs and government support for the adoption of generic drugs are driving the market growth in the region. Additionally, the expiration of patents on several key brand-name drugs and the availability of a wide range of generic drugs in the region are key regional trends.
Europe is also a significant contributor to the global generic drugs market, driven by the presence of a large patient population and the high adoption rate of generic drugs in the region. The increasing healthcare costs and government support for the adoption of generic drugs are driving the market growth in the region. Additionally, the expiration of patents on several key brand-name drugs and the availability of a wide range of generic drugs in the region are key regional trends.
While the Asia Pacific region is expected to witness the highest growth rate in the global generic drugs market, driven by the presence of a large patient population and the increasing adoption of generic drugs in the region. The increasing healthcare costs and government support for the adoption of generic drugs are driving the market growth in the region. Additionally, the increasing incidence of chronic diseases and the rising awareness of the benefits of generic drugs are key regional trends.
Key players and market strategies:
Companies operating in the generic drugs market are implementing various growth strategies to expand their market share and increase revenue. One key strategy is mergers and acquisitions, with companies acquiring smaller players in the market to expand their product portfolio and gain access to new markets. Companies are also investing in research and development to bring new generic drugs to the market, as well as to improve the quality and efficacy of existing products.
Another important strategy being implemented by companies in the generic drugs market is the expansion of their geographic presence through the establishment of new manufacturing facilities and distribution networks in key regions. Companies are also focusing on building strategic partnerships and collaborations with other companies, healthcare providers, and government organizations to expand their reach and increase their market share.
Additionally, companies are focusing on building strong brand image and reputation to gain customer loyalty. These strategies are aimed at increasing their market share, improving their competitive positioning and driving revenue growth.
Some of the biggest companies operating in the global generic drugs market are Abbott Laboratories, ALLERGAN, Baxter International Inc., Eli Lilly and Company, GlaxoSmithKline Plc., Mylan N.V., Pfizer Inc., Sandoz International GmbH, STADA, Arzneimittel AG, Teva Pharmaceutical Industries Ltd. and many more.
Market Segmentation:
By Product Type
- Simple Generics
- Super Generics
- Biosimilars
By Application
- Cardiovascular Products
- Anti-Infective Drugs
- Anti-Arthritis Drugs
- Central Nervous System Drugs
- Anti-Cancer Drug
- Respiratory Products
- Others
By Distribution Channel
- Hospitals
- Pharmacies
- Private Clinics
- Drug Stores
- Retail Pharmacies
- Others
Based on Region
- North America
- United States
- Canada
- Rest of North America
- Europe
- Germany
- United Kingdom
- Italy
- France
- Spain
- Rest of Europe
- Asia Pacific
- Japan
- India
- China
- Australia
- South Korea
- Rest of Asia Pacific
- Middle East & Africa
- UAE
- Saudi Arabia
- South Africa
- Rest of the Middle East & Africa
- South America
- Brazil
- Rest of South America
- Introduction
- Research Objectives
- Report Assumptions
- Research Methodology
- Abbreviations
- Preface
- Market Definition
- Report Scope and Market Segmentation
- Research Highlights
- Market Synopsis: Global Generic Drugs Market
- Global Generic Drugs Market Qualitative Analysis
- Trends
- Market trends
- Technology Trends
- PESTLE Analysis (For 3 prominent countries)
- Market Influencers
- Driving Forces
- Hindering Forces
- Opportunities
- COVID-19 impact
- Porter’s Five Forces Analysis
- Value Chain Analysis
- Trends
- Global Generic Drugs Market Analysis and Forecast, by Product Type
- Overview and definitions
- Key segment analysis
- Global Generic Drugs Market Estimates (US$ Mn), by Product Type, 2019 – 2032
- Simple Generics
- Super Generics
- Biosimilars
- Global Generic Drugs Market Analysis and Forecast, by Application
- Overview and definitions
- Key segment analysis
- Global Generic Drugs Market Estimates (US$ Mn), by Application, 2019 – 2032
- Cardiovascular Products
- Anti-Infective Drugs
- Anti-Arthritis Drugs
- Central Nervous System Drugs
- Anti-Cancer Drug
- Respiratory Products
- Others
- Global Generic Drugs Market Analysis and Forecast, by Distribution Channel
- Overview and definitions
- Key segment analysis
- Global Generic Drugs Market Estimates (US$ Mn), by Distribution Channel, 2019 – 2032
- Hospitals Pharmacies
- Private Clinics
- Retail Pharmacies
- Online Pharmacies
- Global Generic Drugs Market Analysis and Forecast, by Region
- Overview and definitions
- Key segment analysis
- Global Generic Drugs Market Estimates (US$ Mn), by Region, 2019 – 2032
- North America
- Europe
- Asia Pacific
- Middle East & Africa
- South America
- North America Generic Drugs Market Analysis and Forecast
- Overview and definitions
- Key segment analysis
- North America Generic Drugs Market Estimates (US$ Mn), by Product Type, 2019 – 2032
- Simple Generics
- Super Generics
- Biosimilars
- North America Generic Drugs Market Estimates (US$ Mn), by Application, 2019 – 2032
- Cardiovascular Products
- Anti-Infective Drugs
- Anti-Arthritis Drugs
- Central Nervous System Drugs
- Anti-Cancer Drug
- Respiratory Products
- Others
- North America Generic Drugs Market Estimates (US$ Mn), by Distribution Channel, 2019 – 2032
- Hospitals Pharmacies
- Private Clinics
- Retail Pharmacies
- Online Pharmacies
- North America Generic Drugs Market Estimates (US$ Mn), by Country, 2019 – 2032
- United States
- Canada
- Rest of North America
- Europe Generic Drugs Market Analysis and Forecast
- Overview and definitions
- Key segment analysis
- Europe Generic Drugs Market Estimates (US$ Mn), by Product Type, 2019 – 2032
- Simple Generics
- Super Generics
- Biosimilars
- Europe Generic Drugs Market Estimates (US$ Mn), by Application, 2019 – 2032
- Cardiovascular Products
- Anti-Infective Drugs
- Anti-Arthritis Drugs
- Central Nervous System Drugs
- Anti-Cancer Drug
- Respiratory Products
- Others
- Europe Generic Drugs Market Estimates (US$ Mn), by Distribution Channel, 2019 – 2032
- Hospitals Pharmacies
- Private Clinics
- Retail Pharmacies
- Online Pharmacies
- Europe Generic Drugs Market Estimates (US$ Mn), by Country, 2019 – 2032
- Germany
- United Kingdom
- Italy
- France
- Spain
- Rest of Europe
- Asia Pacific Generic Drugs Market Analysis and Forecast
- Overview and definitions
- Key segment analysis
- Asia Pacific Generic Drugs Market Estimates (US$ Mn), by Product Type, 2019 – 2032
- Simple Generics
- Super Generics
- Biosimilars
- Asia Pacific Generic Drugs Market Estimates (US$ Mn), by Application, 2019 – 2032
- Cardiovascular Products
- Anti-Infective Drugs
- Anti-Arthritis Drugs
- Central Nervous System Drugs
- Anti-Cancer Drug
- Respiratory Products
- Others
- Asia Pacific Generic Drugs Market Estimates (US$ Mn), by Distribution Channel, 2019 – 2032
- Hospitals Pharmacies
- Private Clinics
- Retail Pharmacies
- Online Pharmacies
- Asia Pacific Generic Drugs Market Estimates (US$ Mn), by Country, 2019 – 2032
- China
- Japan
- South Korea
- India
- Australia
- Rest of Asia Pacific
- Middle East & Africa Generic Drugs Market Analysis and Forecast
- Overview and definitions
- Key segment analysis
- Middle East & Africa Generic Drugs Market Estimates (US$ Mn), by Product Type, 2019 – 2032
- Simple Generics
- Super Generics
- Biosimilars
- Middle East & Africa Generic Drugs Market Estimates (US$ Mn), by Application, 2019 – 2032
- Cardiovascular Products
- Anti-Infective Drugs
- Anti-Arthritis Drugs
- Central Nervous System Drugs
- Anti-Cancer Drug
- Respiratory Products
- Others
- Middle East & Africa Generic Drugs Market Estimates (US$ Mn), by Distribution Channel, 2019 – 2032
- Hospitals Pharmacies
- Private Clinics
- Retail Pharmacies
- Online Pharmacies
- Middle East & Africa Generic Drugs Market Estimates (US$ Mn), by Country, 2019 – 2032
- UAE
- Saudi Arabia
- South Africa
- Rest of MEA
- South America Generic Drugs Market Analysis and Forecast
- Overview and definitions
- Key segment analysis
- South America Generic Drugs Market Estimates (US$ Mn), by Product Type, 2019 – 2032
- Simple Generics
- Super Generics
- Biosimilars
- South America Generic Drugs Market Estimates (US$ Mn), by Application, 2019 – 2032
- Cardiovascular Products
- Anti-Infective Drugs
- Anti-Arthritis Drugs
- Central Nervous System Drugs
- Anti-Cancer Drug
- Respiratory Products
- Others
- South America Generic Drugs Market Estimates (US$ Mn), by Distribution Channel, 2019 – 2032
- Hospitals Pharmacies
- Private Clinics
- Retail Pharmacies
- Online Pharmacies
- South America Generic Drugs Market Estimates (US$ Mn), by Country, 2019 – 2032
- Brazil
- Argentina
- Rest of South America
- Competition Analysis – Global Generic Drugs Market
- Market Composition
- Market Share Analysis (%), by Supplier (2022)
- Company Profiles
- Abbott Laboratories
- Business overview
- Geographic presence
- Product portfolio
- Financial facts
- Relevant news and strategic view
- ALLERGAN
- Baxter International Inc.
- Eli Lilly and Company
- GlaxoSmithKline Plc.
- Mylan N.V.
- Pfizer Inc.
- Sandoz International GmbH
- STADA Arzneimittel AG
- Teva Pharmaceutical Industries Ltd.
- Abbott Laboratories
- Conclusion & Recommendations
Frequently asked questions about this report
How big is the generic drugs market?
Generic drugs market size was estimated to be US$ 566.85 Billion in 2022
What is the Compound Annual Growth Rate (CAGR) of the generic drugs market?
The global generic drugs market is estimated to exhibit a CAGR of 5.7% from 2023 to 2032.
What are the major driving factors in the generic drugs market?
The global generic drugs market is driven by several key factors including increasing healthcare costs, aging population, government support, expiration of patents, technological advancements and increase in chronic diseases.
Which product type is the largest in the generic drugs market?
The simple generics segment is the largest in the global generic drugs market. This is because simple generics are the most common type of generic drugs and are widely available in the market.
Which application is the largest in the generic drugs market?
The largest segment of the global generic drugs market is the cardiovascular products segment. This is due to the high prevalence of cardiovascular diseases, such as hypertension and heart disease, and the ongoing need for medications to treat these conditions.
Which segment accounted for the largest generic drugs market share?
The North America is expected to hold a significant share of the market due to the presence of a large patient population and the high adoption rate of generic drugs in the region.